Rio explains rejection of BHP's offer

Rio Tinto held a tele-conference in London today to explain why it rejected BHP's proposed takeover and outline the company's plans for the future.

Transcript

ALI MOORE: Rio Tinto has delivered a detailed defence of BHP Billiton's $140 billion takeover bid, telling investors in London tonight the company is poised for growth and repeating its view that the three for one share offer from BHP Billiton fundamentally undervalues the business.

Outlining its plans, Rio announced a more than $2 billion investment in new iron ore mines in Australia, upped its forecast asset sales following the Alcan takeover, predicted better than expected savings from that Alcan merger and promised a bigger dividend.

Here's some of what chief executive Tom Albanese had to say.

TOM ALBANESE, CHIEF EXECUTIVE RIO TINTO: When we rejected BHP's recent proposal, we did so because it is fundamentally undervalued Rio Tinto and its prospects. Today we'll be explaining just where that value lies in Rio Tinto. And in doing so, you'll see I'm comfortable in saying that while BHP may need Rio Tinto, Rio Tinto doesn't necessarily need BHP.